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Most students who wish to study abroad resort to education loans to fund their courses. When it comes to the process of applying for a study abroad education loan in India in order to fund higher studies, time is of the essence. In order to be able to get an early sanction of your study abroad education loan in India, it is very important to apply at the right time. The video embedded below will give you the exact idea about the same.
In any student loan in India for studying abroad, knowing when to apply for one makes a huge difference to a student’s education loan process. Although it may sound easy, the process of securing a study abroad education loan in India could prove to be a tiresome and long affair if students are not mindful of applying on time. It is a well-known fact that a study abroad education loan in India is divided into two different categories based on the need for collateral security.
It is common knowledge that education loans in India are divided into two different categories based on the need for collateral security. Secured education loans from government banks are one of the most common sources of higher education funding chosen by students in India. Students who plan to apply for a government study abroad education loan in India to fund their higher studies are often advised to be prepared for a really long and tiring process. Let’s find out why this is so and what is the possible solution to this problem.
As per the definition, secured education loans are provided by government banks on the basis of collateral security. In order to get an abroad study abroad education loan in India from nationalized banks, applicants need to pledge some sort of asset as collateral security. Most banks in India accept two different forms of assets: tangible assets and intangible assets.
Tangible assets refer to physically present, legally registered immovable properties, such as an independent house, non-agricultural land, non-commercial flat, a plot of land with defined boundaries, etc. Intangible assets generally refer to liquid security such as fixed deposits, life insurance policies with a fixed maturing date, government bonds, etc.
Almost 95% of the students who apply for a student loan from abroad with government banks pledge immovable properties as collateral security. Government banks in India conduct a legal, as well as financial verification of the property, pledged as collateral, before deciding its market price and making a decision on the final education loan amount that can be granted to candidates.
Numerous practical hurdles may pop up when you pledge an immovable property as collateral security with government banks. In the abroad education loan process, the phase in which the bank conducts the legal verification and financial examination of immovable property takes longer to complete when the house or land which is pledged as collateral security is found to have any legal problems.
For example, in a majority of the cases, students who are found to have lost one or two property documents are denied a secured study abroad education loan in India. They are required to apply for fresh documents and then restart the entire process again. Similarly, a bank-appointed civil engineer conducts a thorough study of the property and estimates its final market price. Banks consider this price while calculating the final education loan amount. During the evaluation process, if the engineers come across any violations of the bank’s policies regarding immovable property, borrowers are asked to correct the problem and then re-apply.
Also, read about Personal loans vs Education loan
Many students often wait for their confirmation letters to arrive from their respective universities before applying for a study loan in India for abroad study. This leaves them with very little time between the commencement of their course and the education loan sanction. An important point to note is that a student’s confirmation letter is not required by banks until the legal verification phase is completed successfully. When students apply for an education loan in India to study abroad, after receiving their confirmation, they could feel themselves crunched for time as they might need their funds within a short period of time to fulfill their financial obligations to study in another country, and with banks taking time to sanction their education loan in India for study abroad, this could become a complex affair.
Instead of waiting for a confirmation letter and then applying for an abroad study abroad education loan in India, students should apply for a study abroad education loan in India for abroad studies immediately after dropping in their university applications. This way, by the time their legal and financial reports are done they receive a confirmation letter from the respective universities, and the legal and financial evaluation of the property will have been completed by the bank.
Even if the students have to re-apply for missing property documents, they can do so, before the confirmation letter arrives. In order to know when would be the right time for you to apply for a study abroad education loan in India, do get in touch with the financial team of WeMakeScholars.
After reading about all of the possible hurdles that borrowers of a secured study abroad education loan in India are most likely to face, you might think of funding your higher education with the help of an education loan in India for studying abroad without collateral. You might be surprised to come across the fact that education loans in India for study abroad without collateral applicants also happen to face bouts of delays in the process, even though collateral security is not involved.
In the unsecured education loan process, the co-applicants income profile plays a major role in determining whether the applicant gets to avail of an education loan in India for study abroad without collateral. Borrowers with co-applicants who are self-employed, often find it difficult to obtain a study abroad education loan in India for study abroad without collateral because self-employed co-applicants do not possess the right documents which show a legal income source. Besides that, co-applicants with low CIBIL scores are also not accepted by most private lenders.
The best way to get an abroad study education loan in India is to apply for one as soon as possible. This means that students who are sure of securing admission into the desired university in any of the countries abroad must apply for an education loan for abroad studies as soon as they submit their application for admission into a university of their choice. In this way, they will be able to manage their financial obligations in an efficient manner.
This is specifically applicable to students who plan on studying abroad in countries like Canada, New Zealand, etc. which require applicants to deposit their living expenses before applying for student visas.
If you have just submitted your application for admission to a university abroad and are awaiting confirmation before proceeding with the application process for a study abroad education loan in India, do get in touch with the financial team of WeMakeScholars at the earliest opportunity.
Note: WeMakeScholars is an organization funded and supported by the Government of India that focuses on International Education finance. We are associated with 14+ public/Pvt banks/ NBFCs in India and help you get the best abroad education loan matching your profile. As this initiative is under the Digital India campaign, it’s free of cost. The organization has vast experience dealing with students going to various abroad education destinations like the US, Canada, UK, Australia, Germany, Sweden, Italy, China, and France among others
What is the ideal time to apply for a study abroad education loan ?
The ideal time to apply for a study abroad education loan is six to twelve months before your program begins. This will give you enough time to research lenders, compare interest rates, and gather the necessary documents. Also, keep in mind the admission deadlines for your chosen program.
What are the eligibility criteria for a study abroad education loan, and how do I know if I qualify?
The eligibility criteria for a study abroad education include being an Indian citizen, having secured admission to a recognized institution abroad, and having a co-applicant who is a resident of India and has a stable income source. You can check the specific eligibility criteria for different lenders on their websites. If you meet these criteria, you should be able to qualify for a study abroad education loan in India.
What is the process for applying for a study abroad education loan, I don’t know where to start?
To apply for a study abroad education loan in India, you need to first identify a lender that offers this type of loan. You will then need to submit an application form, along with supporting documents such as your admission letter, financial statements, and identity proof. The lender will evaluate your application and may require additional documents or information. Once your application is approved, the lender will disburse the loan amount to your chosen institution. But if you go through WeMakeScholars, we will provide you with all the services free of cost, without you worrying about the process, just raise a callback request from our experts.
I only have a few months until my program starts. Is it too late to apply for a study abroad education loan?
Although it's always best to start the loan application process as early as possible, it's not necessarily too late to apply if you only have a few months until your program starts. However, you may need to be prepared for a shorter processing timeline and more stringent documentation requirements. Some lenders may also charge a higher interest rate or require additional collateral for loans that are processed on a shorter timeline. We at WeMakeScholars have done a lot of education loan sanctions within a week. You can get yours done as well.